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The research questions I have raised in this paper have significance for various parties. I will broadly divide them into three categories – a) policy makers b) entrepreneurs, businesses and investors c) Entrepreneurial literature

6.1 Significance for policy makers

The relationship between recession and entrepreneurship should be of great interest to the policy makers. Entrepreneurs have been long considered the agents of change and economic development since Schumpeter popularized these views. They are one of the important the drivers of growth. Hence it makes a lot of sense to view them as an outlet towards growth from recession. Thus, promoting entrepreneurship should be high in the agenda of governments seeking growth. Having said that, the policy makers need more precise directions to target their efforts if promoting entrepreneurship were to be an effective instrument in defeating recession. This is where my research questions come into play. My research question tries to identify the individuals who are more likely to be entrepreneurs during recession with regards to their motivation and other characteristics. The policy makers can tailor make the entrepreneurship-spurring programs based on the specific requirements these categories of entrepreneurs. For example, if indeed the proportion of necessity entrepreneurs increase during recession and, in general, they lack human capital in comparision to opportunity entrepreneurs, then the government can introduce program that will help them bridge that gap to an extent (alongside the financial assistance which is common) or make the financial support contingent on a certain level of specific human capital (Block & Wagner, 2010).

Similarly, the question regarding the industry composition (relative entries rates in different indistries) will help policy makers focus on industries that attract more entrepreneurs during recession in the short term.

6.2 Significance for entrepreneurs, businesses and

investors

The essence of my study is to assess how the firms founded during recession fare compared to those founded during economic growth and what are the underlying causes behind the differences if there is any. Thus, for any entrepreneur that has started his/her firm during recession, or the one who will start one during future recessions will be able to use my findings and address the vital issues that could be lead to their survival or death during the gestation period of the firm formation since the previous studies have indicated it to be a period, the decisions made in which will have long lasting impact. For example, if the survival of the firm is a function of its innovativeness, then the recessionary entrepreneur can emphasize (if he/she can) on that particular area. The findings in my study with respect to differences in traits and characteristics of opportunity and necessity characteristics and how it translates into firm level characteristics and eventually performance can serve as a guideline for both categories to learn from.

My question relating to the performance of recession born firms in future recessions will help entrepreneurs as well as existing businesses identify “genes” in the firm that can lead to protections during recessions. This would be significant for firms founded in recession (to protect those “genes”) and those founded during economic growth (to acquire those “genes”). The question regarding if such genes can be acquired (through M&A) is implicit in the last research question. If these questions reveal interesting information, this could be significant in shaping the M&A strategies of businesses because then the founding conditions of firm would be put in the equation while deciding which firm to acquire or merge with.

Finally, the study will also be significant to the investors. Most investors prefer (or are forced by constraints) to remain dormant during recession or bear markets. My study will help them better identify the types of startups that are likely to go all the way and give them good returns. The investors will be able to identify the entrepreneurs as well as the firms that are likely to do good in the future based on their characteristics.

6.3 Significance for Entrepreneurial literature

As referred to the earlier sections of this paper, there have not been enough studies in this particular field. Even among the existing studies, consensus is rare. It is difficult to find comprehensive studies done that deals with the complicated interplay between recessions, entrepreneurship and the fate of those startups founded during recessions. In a preliminary study in similar domain, Kedrosky (2008, p. 4) says, “ the relationship between when a company is founded and its eventual success is little-explored, but interesting and important…there is much more work that could be done”

My research questions are divided into three sections. The first section is about the entrepreneurs of recession, second section is about the firms founded by these entrepreneurs and the third is the performance of these firms. While overwhelming majority of similar studies focus on task environments (e.g. market size, concentration etc.) and control for economic environment, my study will give opposite perspective. I believe that these three sections, when combined together, will give a bigger picture of the interaction between recession and entrepreneurship.

The availability of rich personal level data in Norway, and the use of robust analytical techniques should add to the quality of studies done in the field. Several meta-analytical studies in the past, as referenced in earlier sections, critique the field for lacking studies with longitudinal data. This study addresses that particular issue. Further, the triangulation of secondary and survey data to answer the questions whenever possible will be another feature of my study that has been quite rare in the entrepreneurial research. I believe that the measures I have taken in the study will add to the quality of literature in the field.

Finally the issues of raised by my final two questions are quite novel to the best of my knowledge and its findings could add value to both entrepreneurship literature as well as evolutionary theory.